2006-09-25 06:03:29 · 8 answers · asked by nicole_williams12000 1 in Business & Finance ➔ Credit
It is quit possble that your credit will go up after purchasing a car. It shows that a bank thinks you are credit worthy.
2006-09-25 07:21:27 · answer #1 · answered by cargrl 3 · 0⤊ 0⤋
There's no set answer for that. How much any particular change affects your credit score depends on its relative impact to your credit report. An inquiry can reduce your score very minimally if you're a light user of credit, or hit you for 30+ points if you're already "maxed out" according to the scoring formula. Likewise, a secured loan like a car loan may have very little impact if your overall credit report is strong, but if you already have high payments and high balances adding another hefty payment could hurt you. On the other hand, a paid-as-agreed car loan can also help your credit score.
2006-09-25 13:09:29 · answer #2 · answered by mockingbird 7 · 0⤊ 0⤋
Credit score is based on history of your purchases and on time payments reflected after about 2 months after the car purchase.
Creditors compare your debt against you income
If your car is 40% of your income you are in trouble and probably will not be able to get another credit card.
2006-09-25 13:04:34 · answer #3 · answered by god knows and sees else Yahoo 6 · 0⤊ 0⤋
A new loan of any kind always drops the score, but the drop is temporary. How many points your own scores will drop depends on hundreds of factors on your other credit.
As time goes by and you pay on time, your scores will not only recover any points lost, but will rise further UNLESS your loan is with a finance company, which are BAD for scores.
Go to www.LearnAboutCredit.com
2006-09-29 03:04:27 · answer #4 · answered by supercreditguru 3 · 0⤊ 0⤋
It won't drop, actually a properly paid -on -time car loan can actually help increase your credit score.
what you have to watch out for though is adding additional debt, particularly if your income isn't rising as fast as your debt. Be particularly careful of credit card offers from the bank that has your car loan. I've found this to be dangerous, because they are usually willing to give you a high credit limit. Remember...Your debt to income ratio is judged on your "potential" credit, not just on the amount of your cards that you've already used.
2006-09-25 13:28:06 · answer #5 · answered by MALIBU93 2 · 0⤊ 0⤋
God. I hope mine goes up like Carl said. I need the boost so I can get a house. I really can't answer your question yet becasue I'm still waiting to see what my credit score is going to do. I just bought a new car earlier this month. Good luck to both of us.
2006-09-25 16:25:07 · answer #6 · answered by Anonymous · 0⤊ 0⤋
credit score is based on how efficiently paying your payments, month by month
2006-09-29 04:39:38 · answer #7 · answered by Anonymous · 0⤊ 0⤋
does NOT drop unless you miss a payment.
2006-09-25 13:05:25 · answer #8 · answered by Anonymous · 0⤊ 0⤋